Troy-based Delphi Corp. on Friday said it will seek final bankruptcy approval to sell its steering and halfshaft business to Steering Solutions, a wholly owned entity of the Los Angeles-based private investment firm.

A sale hearing is scheduled for Thursday, Feb. 21, in U.S. Bankruptcy Court in New York.

Delphi, which filed for Chapter 11 bankruptcy protection in October 2005, plans to conclude the sale as soon as it receives all regulatory approvals.

"Delphi continues to make progress in its Chapter 11 cases, and we regard this step with the global steering business as another important development in our transformation," spokesman Lindsey Williams said.

United Auto Workers Local 699 President Mike Hanley said the announcement is good news.

"We're looking forward to building a constructive relationship with the new owners. But the transformation is nowhere near done," he said. "We want to work with an owner who wants to keep and grow jobs in Saginaw."

The News could not reach UAW Local 699 Bargaining Chairman Bob LaBonte for comment. Most of the management team at Delphi Steering, 3900 E. Holland in Buena Vista Township, will move to the new company.

In related news, Judge Robert Drain authorized Delphi to continue with an auction that could result in the sale of its global bearings business to private equity firm Resilience Capital Partners.

He approved procedures for a Wednesday, Feb. 13, auction.
Resilience Capital, through its ND Acquisition Corp. subsidiary, has offered up to $44.2 million for the bearings business. The business, based in Sandusky, Ohio, employs 1,000 workers.

Delphi is the largest supplier to General Motors Corp. As part of its bankruptcy restructuring, it is selling off businesses it considers "non-core."

Dow Jones Newswires and The Associated Press contributed to this report.